D.K.
I wouldn't and since the mother in law's cat came second and started the issue, I would talk to your husband about the possibility of rehoming her to remove the stress from your cat. That being said, now that you have the behavior it is harder to get rid of, but it sounds like it is already improving. I don't think it is fair to boot the resident cat usually. I do know cats that have been euthanized for this reason, but most of them also had other things wrong as well.
We have a cat with sterile cystisis and when stressed she will pee out of the box. She is on meds and urinary diet as well as cosequin to manage her and is doing really well currently.
Make sure every area is really cleaned up. If you think their may be more urine, a black light will make it show up. I like nature's miracle for cleaning up.
Feliway is great, you may be able to find the refills cheaper online. Also there is a product called cat attract that you add to the litter and I know people who have had success with it. The behavioral medications take awhile to build up in their system, not sure how long your cat has been on them. Some cats also do better on different medications. I knew one that did great when on a medication that is usually used for pain (found out by accident when no problems after a dental where he had teeth pulled). The owner were starting to talk about euthansia, but the cat did fine after the dental so they ended up keeping him on a low dose and no more problems.
The best of luck to you and your kitty